The landlord may also ask for a personal guarantee from the directors. Security: If you are a small company or have no trading history the landlord may ask for a rent deposit.Stamp Duty Land Tax: There is often an SDLT liability when taking a lease, even on a short term if the rent is high enough. You will probably need landlord’s consent for any change of use application. The latter is your responsibility to check and, if necessary, obtain. Use: What the lease permits is not the same as the permitted planning use.You are unlikely to be permitted to share the property with anyone and you may be required to guarantee any incoming tenant’s liabilities. Assignment or sub-letting: You may be able to transfer (assign) your lease with the landlord’s consent, or underlet the property.VAT: Does your landlord charge VAT on the rent? If so, can you recover it as input tax?.Service charge: Does the landlord make a service charge for repairing the building or estate, or common areas? Get a budget for the annual cost and whether any substantial works are planned.Insurance: Usually the landlord insures and recovers the cost from the tenant.You may also need planning permission and/or Building Regulations approval. Structural alterations are usually prohibited and anything permitted will need to be reinstated to the original condition when you leave. Alterations and signs: Fit out works and signage generally need consent from your landlord, and this is easier and cheaper to obtain when signing the lease.If the property is not in good repair, ask for the repairing obligation to be limited to the current condition, with photographs as evidence. If they won’t, consider whether it is worth the risk. Ask the landlord to fix any issues before you sign. – take a surveyor with you if you wish – but ensure you know what you are getting. Repair: Property is ‘let as seen’ so before you commit, switch on the lights, test the boiler, check the drains, inspect the roof etc.Rent reviews: Most longer leases will allow the landlord to increase the rent at regular intervals.If you want long term security ask for this upfront. Many commercial landlords will exclude this right. Security of tenure: This is the right to remain in the property and request a new lease when the term ends.Do you need parking spaces, access to toilets and kitchen areas, bins etc.? If so, this should be in the lease. There may be common facilities that are available for your use. Property: Is it a lease of a whole building, or just part of it? Repair obligations for the exterior and structure can be very costly and should be avoided if possible.Breaks: An option to terminate early can give you a ‘get out of jail free’ card.Term: A longer term gives you security but ties you to a lease that is difficult or even impossible to get out of.Jenny Colvin, Commercial Property Associate, explains some of the key issues: Failure to pay rent on time may result in financial penalties and collection efforts with your late payment reported to the relevant credit agencies.Entering into a commercial lease is a big commitment, and there are many factors to consider before signing on the dotted line. Please remember, you cannot use your security deposit to pay your final month's rent. After you move out of your rental home, we will perform a final inspection any damages we identify will be repaired and associated costs will be deducted from the deposit. The security deposit you pay at the outset of your lease protects against damages that may occur during your tenancy. If more serious damage has occurred, contact our team to find a solution. Patch nail and screw holes, replace broken items, and change out lightbulbs. Repairs: If any damage occurred inside your home during your stay, you'll need to take the necessary steps to make repairs. Landscaping & Outdoor Areas: If you typically handle landscaping chores for your home, please take care of these one final time before you hand in your keys. All hard surfaces should be sanitized and floors vacuumed or mopped. Carefully clean every room in the home, paying special attention to the kitchen and bathroom spaces. Do not leave any refuse behind or you may be fined for its removal. Rental Cleaning: Your property must be carefully cleaned, with all of your possessions removed from the home. Please make sure you handle the following: Property Conditionīefore you hand in the keys for your rental, you need to make sure it's ready for a new tenant. This gives our team time to begin preparing for new occupants in the unit. We ask that all tenants provide at least 60 days notice before vacating. You must pay rent through this date leaving before your lease ends will cause you to incur break fees. Planning to move out of a home we manage? Please refer to the official move-out date in your lease.
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